Youth Employment 101: Paid vs Unpaid Internships and Work Experiences

Youth Employment 101 for Educators Stipends, Wages, Internships

Learning Objectives At the conclusion of this session you will be able to: • Identify whether an internship / work experience should be paid or not paid; • The circumstances under which students can engage in unpaid experiences in for profit businesses; and, • Identify who is liable during an internship or work experience.

Why are Internships & Work Experiences a Hot Topic? World Wide Big Picture – Global competitiveness and Economic Development McKinsey & Company conducted a survey of 2700 employers and 900 educators was conducted in November, 2012. The results: • 70% of the employers reported that young people had inadequate skills for the most entry level jobs, including inadequate problem solving skills and basic employability skills. • 70% of the educators believed they suitably prepared their graduates to enter the labor market. • A global shortfall of 85 MILLION high and middle skilled workers is predicted by 2020

Why are Internships & Work Experiences a Hot Topic? Locally – Global competitiveness and DOJ Consent Decree • Clay Pell – ALL students will have job training internships • Youth with I/DD must annually have a career development plan and a vocational assessment. • Youth with I/DD must have at least two sixty day work experiences by the time they exit school.

The Benefits of Internships & Work Experiences for All Youth Studies show that students who engage in workforce development activities demonstrate a higher rate of college completion as well as better success in the labor market. (US Department of Justice) • Identification of career interests, skills, and abilities; • exposure to job requirements and responsibilities, employer expectations, workplace etiquette, and workplace dynamics; • development of critical workplace skills and a solid foundation for good work habits; • improvement of post-school outcomes; and • selection of appropriate courses of study tied to career goals. Work exposures and experiences help youth make the critical connection between education and work!

Paid or Unpaid Internships & Work Experiences in General Fair Standards Labor Act: The Test for Unpaid Interns The following six criteria must be applied when making this determination: • The internship, even though it includes actual operation of the facilities of the employer, is similar to training which would be given in an educational environment; • The internship experience is for the benefit of the intern; • The intern does not displace regular employees, but works under close supervision of existing staff;

Paid or Unpaid Internships & Work Experiences in General Fair Standards Labor Act: The Test for Unpaid Interns The following six criteria must be applied when making this determination: • The employer that provides the training derives no immediate advantage from the activities of the intern; and on occasion its operations may actually be impeded; • The intern is not necessarily entitled to a job at the conclusion of the internship; and • The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.

One Caveat • The FSLA states that unpaid internships in the public sector and non-profit charitable organizations, where the intern volunteers without the expectation of compensation, are generally permissible. • Examples – • City or Town Halls • Police or Fire Stations • Goodwill Industries • RI Food Bank • Lifespan – formalized volunteer departments

Paid or Unpaid Internships & Work Experiences in General Do your work readiness programs, internships or work experience placements pass the FSLA test? Case Study – Beth is in her senior year of school and has expressed an interest in retail. The school’s Work Experience Coordinator has arranged for Beth to engage in a work experience at Marshall’s to see if she likes it. For the next month, Beth will arrive at store on Monday’s and Wednesday’s and from 2:00pm – 5:00pm and will monitor the dressing room. When no people are in the dressing room Beth will take the unpurchased clothes, arrange them neatly on the hanger and return the items to their original location. Should this experience be paid or unpaid? Why or why not?

Paid or Unpaid Internships & Work Experiences in General Should this experience be paid or unpaid? Why or why not? Beth should be paid based upon the following reasons: • According to the FLSA the experience needs to be similar to a training given in an educational environment(no educational structure). • No one is working with Beth, training her or monitoring her activities. • If Beth wasn’t doing this activity, another employee would have to do this work (displacing an employee). • The employer is benefiting from Beth’s activities.

Paid or Unpaid Internships & Work Experiences in General Do your work readiness programs, internships or work experience placements pass the FSLA test? Case Study – Josaun is 16 years old and enrolled in a summer work preparation programat Ready for Work Unlimited. In order to remain in the program and be considered successful, Josaun must arrive on time, be respectful to others, work as part of a team, and complete the benchmarks expected of him. During the course of the program, which runs Monday – Friday from 9am – 3pm, Josaun will spend about 70% of his time engaging in job exploration activities and job shadowing opportunities. Each week Josaun will be given a $100 gift card for successful participation. Is this okay? Why or why not?

Paid or Unpaid Internships & Work Experiences in General Is this okay? Why or why not? This is okay because: • Josaun is not producing any work and no employer is benefitting. • Josaun’s program is geared to benefit of Josaun. • Josaun is provided a gift card for achieving milestones set forth in his program, which are designed to give him career exploration and positively develop his work attitudes.

Fair Labor Standards Act Training Agreement of 1992 DOL’s Wage and Hour Division Field Operations Handbook (http://www.dol.gov/whd/FOH/ch64/64c08.htm) FOH Field Operations Handbook Chapter 64 Employment of Workers with Disabilities at Special Minimum Wages under Section 14(c) Section 64c Employment Relationship Community Based-Vocational Education is an option!

Community Based Vocational Education Guidelines What is it? The delivery of non-paid vocational education and training in work settings in the community to students ages 14 and older with disabilities. Allowable Activities? • Vocational Exploration • Assessment • Training experiences … …for the purpose of identifying vocational interests, assessing skills and training needs and the opportunity to develop the work attitudes AND aptitudes needed to gain employment. SOURCE: Judith L. Imperatore, M.Ed – www.transitionresponse.com - Making Careers Happen, 2013

Work Attitude is Our Job and Employers #1 Complaint! The student should: • Come to work on time • Be a team player • Be positive (don’t complain or whine) • Ask for help when needed • Be courteous and friendly • Use office equipment for work- related tasks only • When voicing concerns, be respectful • Show respect for yourself and others • Use good personal hygiene Source: National Center on Secondary Education and Transition • Keep personal telephone calls to a minimum • Take personal responsibility • Come to work appropriately dressed • Keep personal visits to a minimum • Be reliable and follow through • Ask for more work when tasks are complete • Keep absences to a minimum and be sure to call in when sick • Work HARD! Before placing a student in the community be sure they have the right work ATTITUDE. Aptitude (skills and productivity) will / can be developed.

Community Based Vocational Education Guidelines Conditions to be met for the US DOL to NOT consider an unpaid student and employee: • Participants are individuals with disabilities for whom competitive employment at or above the minimum wage level is not immediately obtainable and who, because of their disability, will need intensive ongoing support to perform in a work setting. • Participation is for vocational exploration, assessment or training in a community-based work site under the general supervision of public school personnel. SOURCE: www.dol.gov/whd/FOH/ch64/64c08

Community Based Vocational Education Guidelines Conditions to be met for the US DOL to NOT consider an unpaid student an employee: • Community-based placements must be clearly defined components of IEPs developed and designed for the benefit of the students. The IEP will include transition services for the purpose of exploration, assessment and/ or training. • The information contained in the IEP does not have to be disclosed to DOL but documentation that reflects that the student is enrolled in the community-based program and that participation is voluntary and there is no expectation of payment may be requested. (form) SOURCE: www.dol.gov/whd/FOH/ch64/64c08

Community Based Vocational Education Guidelines Conditions to be met for the US DOL to NOT consider an unpaid student and employee: • The activities of the student do not result in an immediate advantage to the business. Factors include: • There has been no displacement of regular employees, vacant positions have been filled by regular employees and not students, and no regular employees have been relieved of assigned duties. • Students are under the continued and direct supervision of representatives for the school. • Placement are made to meet the need of the IEP, not the labor needs of the business. • The IEP specifies time limitations and the job classification of the student participating in the CBVE. SOURCE: www.dol.gov/whd/FOH/ch64/64c08

Community Based Vocational Education Guidelines Conditions to be met for the US DOL to NOT consider an unpaid student and employee: • While the existence of an employment relationship will not be determined exclusively on the basis of the number of hours in each activity, as a general rule, each component will not exceed the following limitation during any one school year: • Vocational exploration – 5 hours per job experience • Vocational assessment – 90 hours per job experience • Vocational training – 120 hours per job experience SOURCE: www.dol.gov/whd/FOH/ch64/64c08

Community Based Vocational Education Guidelines Conditions to be met for the US DOL to NOT consider an unpaid student and employee: • Individuals are not entitled to employment at the business conclusion of the IEP. However, if the student becomes and employee, s/he cannot be considered a trainee at that community-based placement unless in a different, clearly distinguishable occupation. SOURCE: www.dol.gov/whd/FOH/ch64/64c08

Documentation Guidelines • Community-Based Nonpaid Vocational Exploration, Assessment & Training Agreement or Document that… • Outlines the location, the student, the targeted vocation, start and end times, days of participation, CBVE guidelines, and signatures by the business, school personnel, student, parent/guardian and school principal. • IEP • Identification in the IEP of goals and objectives related to work assessment, exploration or training • On-going documentation • Relevant documents such as case notes, attendance records, progress reports or evaluations by employer, etc. SOURCE: Judith L. Imperatore, M.Ed – www.transitionresponse.com – Making Careers Happen, 2013 SOURCE: www.dol.gov/whd/FOH/ch64/64c08

Liability and Supervision Liability • In non-employment relationships, the worksite is perceived as an extension of the school. • Students are not eligible for Worker’s Compensation or insurance coverage provided to employees. • The school is responsible for liability coverage, which is generally the same insurance and liability policy which applies to other off-site school experiences (athletics, field trips, etc.) SOURCE: Judith L. Imperatore, M.Ed – www.transitionresponse.com – Making Careers Happen, 2013

Liability and Supervision Supervision • The student is expected to be closely supervised by school staff or employees of the business • Continued and direct supervision is required. This can include one to one instruction, small group instruction, supervision in close proximity, and supervision in frequent and regular intervals. • Students are to be monitored at all times. The intensity of that monitoring is determined on an individual basis. SOURCE: Judith L. Imperatore, M.Ed – www.transitionresponse.com – Making Careers Happen, 2013

So, What Are Your Options for Work Experience for Youth? Internships – • The internship meets the six criteria set forth by the FLSA – NO benefit to the employer – educational structure and benefit to the student. • If the internship does not meet the criteria of the FLSA the student needs to be compensated with wages or stipends equaling at least minimum wage. Community Based Vocational Education – • The seven conditions set forth by the FSLA are met • Eligible students are those with a disability Formalized Volunteer Departments / Opportunities – • Unpaid internships in the public sector and for non-profit charitable organizations.

Q&A and Upcoming Sessions Upcoming Topics in September & October… Part II: The Nuts and Bolts of Transition What Parents New to Transition Should Know Part III: Strengthening Collaborations for Better Transition Outcomes Part IV: Using Rapid Job Placement in Transition Part V: Employer Expectations Preparing youth for the contemporary labor market Part VI: Assessing Work Aptitudes and Attitudes of Students in Transition Part VII: Finding Jobs for Students with Disabilities A Practical Step by Step Training for Educators Part VIII: Culturally Sensitive Transition Planning

Youth Employment 101: Paid vs Unpaid Internships and Work Experiences